Asia Roundup: Spooked by China GDP data

HONG KONG: Asian markets sank yesterday after China posted lower-than-expected economic growth, while ratings agency Moody's warned France it may lower its credit rating amid growing eurozone debt worries.

In Tokyo, the benchmark Nikkei 225 Index, which closed at a six-week high on Monday, fell 137.69 points to 8,741.91.

The Nikkei dropped as "excessive expectations wane" for a far-reaching resolution to the eurozone crisis, said Hideyuki Ishiguro, supervisor at investment strategy at Okasan Securities.

In Shanghai, the composite index lost 56.91 points at 2,383.49.

"The 9.1 per cent GDP growth shows China's economy is slowing, which is not as good as people expected," Li Bin, an analyst at Guolian Securities, said.

"As long as global economies don't recover and the European debt crisis haunts, market sentiment will remain weak," he added.

In Sydney, stocks slumped and the benchmark S&P/ASX 200 was down 88.5 points, or 2.07 per cent, at 4,186.9.

"Almost all sectors are weaker, with a broad sell-off across the resources," said IG Markets analyst Stan Shamu. "Today the market seems to be paying the price for its recent exuberance - some would say over-exuberance."

Investor sentiment was dented by warnings from Germany against too much hope that an EU summit this weekend will produce a comprehensive solution to Europe's fiscal woes.

"Both last night's announcement in Germany and (Tuesday's) Chinese figures have given the market reason to take profits," said Ben Taylor, sales trader at CMC Markets in Sydney.

In other markets:

* Seoul lost 1.41 per cent, or 26.28 points, to finish at 1,838.90.

* Taipei shares fell 101.64 points, or 1.36 per cent, to 7,359.48.

* Mumbai shares slid 1.63 per cent or 276.8 points to 16,748.29.

*Jakarta shares fell 2.87 per cent, or 106.99 points, to 3,622.03.

* Manila was down 1.36 per cent, or 57.19 points, at 4,157.26.

* Bangkok fell 1.94 per cent, or 18.88 points, to close at 952.75. - AFP